"The Union Finance Minister will meet state finance ministers on December 26 and is likely to stress on an urgent need to harmonise of harmonising of economic policies, as mutual coordination in federal structure is important for creating a conducive environment for growth," a senior finance ministry official said.

Jaitley is scheduled to present his first full Union Budget in February, 2015.

This would be Jaitley's first meeting with state finance minister after a long-awaited consensus was reached on the rollout of GST (Goods and Services Tax) regime to put in place a single nationwide indirect tax. in place of various levies imposed at state levels.

The consensus was struck after following several rounds of meetings between Jaitley and the state finance ministers.

During Friday's meeting, the state finance ministers are also likely to press for an early release of compensation for lowering Central State Tax (CST) rate, among other regional issues.

CST, a tax imposed on the inter-state movement of goods, was reduced from 4 per cent to 3 per cent in 2007-08 and further to 2 per cent after the introduction of the Value-Added Tax (VAT).

The upcoming meeting also assumes significance as it comes after the 14th Finance Commission, headed by former RBI Governor Y V Reddy, having submitted its report.

The Commission was constituted in January 2013 to recommend, among other things, distribution of taxes between the centre and states as well to suggest measures for maintaining a stable and sustainable fiscal environment.

Jaitley will be hold brainstorming sessions with various stakeholders during his annual pre-budget meetings in the coming weeks.